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Technology
30 January 2025

OpenAI Alleges DeepSeek Misused Proprietary Models

Accusations arise amid rising concerns over AI intellectual property violations

OpenAI has made headlines recently after alleging Chinese AI startup DeepSeek misused its proprietary models to train competitive artificial intelligence. This accusation has arisen amid increasing concerns surrounding intellectual property rights within the rapidly-evolving tech sector.

According to reports from Financial Times, OpenAI claims to have discovered evidence indicating DeepSeek utilized its technology without permission to create its own open-source model. This technical move, commonly referred to as "distillation," allows developers to streamline smaller models by leveraging the capabilities of larger, established AI systems, potentially leading to similar performance outcomes at lower costs.

OpenAI's concerns are rooted not only in the potential infringement of its services but also signify larger tensions among AI developers and the proprietary technologies they create. "There is significant evidence showing what DeepSeek has done is they have distilled knowledge from OpenAI's models, and I don't think OpenAI is happy about this," said David Sacks, who previously served as AI advisor to former President Donald Trump.

Last year, OpenAI and its partner Microsoft launched investigations targeting accounts linked to DeepSeek which tapped the OpenAI API. These accounts were eventually halted due to suspicions of breaching OpenAI's terms of service. The response from OpenAI showcases its commitment to safeguarding its intellectual property as competition heats up among companies both local and international.

Notably, DeepSeek claims to have invested only $5.6 million and utilized 2,048 Nvidia H800 GPUs to train its V3 model, which reportedly boasts 671 billion parameters—a stark difference compared to the significant financial resources funneled by major players like OpenAI and Google for similar capabilities. Interestingly, industry analysts observed how DeepSeek’s model yielded outputs suggestive of having been trained on GPT-4's outputs, insinuations of potential policy violations against OpenAI’s service agreement.

Industry experts remarked on the commonality of output utilization among startups and academic institutions. "Using human-generated feedback from commercial language models like ChatGPT to train another model is common practice," noted Ritwik Gupta, AI doctoral candidate at the University of California, Berkeley. This nuance complicates the dialogue around potential infringements and what constitutes acceptable practice within the growing AI domain.

OpenAI's legal framework explicitly forbids users from "copying" any of its service outputs to develop competitive models. This safeguard aims to maintain the integrity of their technology and protect against loss of competitive edge. Given the rapid pace of development within AI technology, enforcement of such terms may present significant challenges. OpenAI has remarked, "We are seeing attempts by companies based out of China and others to distill models from leading US AI companies"—a statement indicating their heightened vigilance and proactive approach to safeguarding advanced technologies.

Ironically, OpenAI is simultaneously grappling with allegations relating to its own copyright violations. Several publishers, including the prestigious The New York Times, have accused OpenAI of utilizing their written content to develop its AI models without authorization. This unexpected turn of events has raised questions over the ethics of how AI companies utilize existing content to train their technology.

The clash between OpenAI and DeepSeek exemplifies not only the competition for technological supremacy but also the broader battle over intellectual property rights within the AI industry. Will OpenAI succeed in defending its intellectual properties against perceived infringements from DeepSeek? Or does the emergence of these technologies invoke discussions about the essence of innovation and competition? Only time will reveal the outcome.